Tangible, the team behind the crashing Polygon-based stablecoin project, has promulgated specific action plans amid the significant unexpected de-peg.
Recently, the Real USD (USDR) stablecoin, collateralized by a blend of cryptocurrencies and real estate assets, detached from the United States dollar’s value due to a surge in redemption requests.
According to market tracker CoinGecko, USDR now exchanges hands at $0.533546 instead of the $1 value. Moreover, CoinGecko data shows that USDR has lost 29.40% over the last 24 hours and 46.94% in the past seven days.
USDR Team Reacts
Notably, USDR is issued by the Tangible protocol, a DeFi initiative tokenizing real estate and tangible assets. In a recent tweet, Tangible confirmed that USDR’s de-peg followed a surge in redemption, which led to a depletion of liquid assets, including DAI, from the USDR treasury.
The statement read:
“Over a short period of time, all of the liquid DAI from the USDR treasury was redeemed. This led to an accelerated drawdown in the market cap. Combined with the lack of DAI for redemptions, panic selling ensued, causing a de-peg.”
An update on $USDR
Over a short period of time, all of the liquid $DAI from the $USDR treasury was redeemed.
This lead to an accelerated drawdown in the market cap.
Combined with the lack of DAI for redemptions, panic selling ensued, causing a depeg.
We’re working on…
— Tangible ?? (@tangibleDAO) October 11, 2023
Amid a nearly 50% decline in USDR’s value, the project’s team has assured the community it will deliver solutions for the issue. They attribute it to a temporary liquidity challenge.
Action Plan
In a follow-up statement, the Tangible team pledged to restore faith in the USDR stablecoin and ensure the satisfaction of its users. They emphasized their determination to continue building on their existing foundation.
Specifically, Tangible disclosed plans of action encompassing several vital elements. It highlighted that USDR’s collateralization would remain at 84% after marking its ecosystem token, TNGBL, and the insurance fund to zero.
Furthermore, the team mentioned it has withdrawn protocol-owned liquidity (POL) from the decentralized exchange Pearl, which operates on the Polygon network. Since the protocol cannot redeem the USDR itself, it has consequently burned the tokens.
However, Tangible noted it controls approximately $2.4 million in protocol-owned stablecoins, including DAI, USDC, and USDT.
“The remaining stablecoins from POL and Insurance Fund sales will be available to customers through the redemption process,” the team proclaimed.
In addition to these steps, Tangible announced the imminent launch of Baskets, which are pools of tokenized real estate. According to the team, the Baskets will play a crucial role in the redemption process.
In particular, it will allow users to hold real estate-backed tokens, collect yield through rebasing, “farm Basket tokens on Pearl, or sell them into established Pearl liquidity.”